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INTERNSHIP REPORT

ON

AT VARUN BEVRAGES PVT. LTD (PEPSICO)

Submitted in Partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION
in the
University School of Business
CHANDIGARH UNIVERSITY, GHARUAN
2017-18

Submitted by:
Name: ONKARPREET KAUR
UID: 16MBA1100

University School of Business
Chandigarh University

DECLARATION
I, hereby declare that the work being presented in this report entitled “Performance
Appraisal” is an authentic record of my own work, carried out under the supervision of Ms.
“JYOTI VERMA”.

The matter embodied in this report has not been submitted by me for the award of any other
degree. This an authentic research work and has not been copied or duplicated from any other
source.

ONKARPREET KAUR
Specialization: - HR DATE

ACKNOWLEDGEMENT

I am fortunate to have got an opportunity to undergo the “Internship” at VARUN
BEVERAGES PVT LTD (PEPSICO). The project has been very useful for me in
understanding the various pragmatic aspects of the management function practice in the real
world. I express my deep sense of gratitude to Ms. JYOTI VERMA (HR MANAGER), for
their counsel throughout my training. I would also like to express my gratitude to all the
members of Varun beverages for their assistance and constant motivation.

Above all, I give my special thanks to all my faculty members who have supported me. I am
very thankful to all of them who have guided me for my project.

(ONKARPREET KAUR)

TABLE OF CONTENTS Topics Page No. Cover Page -- Declaration i Certificate of authenticity of Report to be signed by Industry Guide Ii Certificate of Authenticity of report to be signed by Faculty guide iii Acknowledgement CHAPTER 1 FMCG industry in India 1-3 Introduction about Varun beverages 4 History of PEPSICO 5-7 Pespsi in India 8-9 Varun beverages Philosophy 10-11 Future plans of the Company 12 CHAPTER 2 Executive Summary 13 Product Profile 14-15 Consumer choice at Galance 16 Promotions by company 17 Comparison of PEPSI and COCA-COLA 18-20 SWOT 21 STEEP analysis 22-23 CHAPTER 3 Objective of study 24 Scope of the study 25 CHAPTER 4 Review of Literature 26-36 CHAPTER 5 Methodology 37-38 CHAPTER 6 Analysis and Interpretation 39-58 Chapter 7 Conclusion 59 Bibliography 60 Appendix 61 .

Most of the companies were forced to revamp their product. they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries. as opposed to luxurious needs. distribution and customer service strategies to strengthen their position in the market. such as television and the Internet.The FMCG Industry in India Fast Moving Consumer Goods.93000 crores. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. The FMCG sector. FMCG share float in a steady manner irrespective of global market dip. FMCG does not suffer from mass layoffs every time the economy starts to dip. rapid urbanization. marketing. These changes had a positive impact that is leading to the rapid growth in the FMCG industry. and qualified manpower also boosted the growth of the organized retailing sector. such as automobiles. And the social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and most relatively low cost. computers. the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media. Chapter 1 A brief insight. making up 32% of the sector. Increased availability of retail space.143000 crores. Consumers generally put less thought into the purchasing of FMCG than they do for other products. the FMCG sector will be worth Rs. . With the liberalizatio. Many companies had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. The Indian FMCG industry has witnessed significant changes through the 1990s. Unlike other economy sectors. A person may put off buying a car or any other luxury good but he will not put off having his dinner. It is predicted that in the year 2010. and airlines. Though the profit made on FMCG products is relatively small. which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs. is the South Indian region. the face of the Indian FMCG industry had changed significantly. The main contributor. By the 20th century. This sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. because they generally satisfy rather fundamental.

as against 12 per cent rise in urban areas. Rural – set to rise Rural areas expected to be the major driver for Fast moving consumer goods. Hence rural demand is set to rise with rising incomes and greater awareness of brands in rural area. loan waivers. as growth continues to be high in these regions. Urban trends With the rise in disposable incomes. firms have started enhancing their premium products portfolio. mid. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. and disbursements through the National Rural Employment Guarantee Act (NREGA) programme. Companies are also working on creating specific products specially targeted for the rural market. The Government of India has also been supporting the rural population with higher minimum support prices (MSPs). as they quickly went about increasing direct distribution and providing better infrastructure to them. Growing awareness. Rural areas saw a 16 per cent rise. Most companies rushed to capitalise on this.and high-income level consumers in urban areas have shifted their purchasing trend from essential to premium products.Today: The fast moving consumer goods is the fourth largest sector in the Indian economy. These measures are helping in reducing poverty in rural India and given a boost to rural purchasing power. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 and to US$ 74 billion in 2018. and changing lifestyles have been the key growth drivers for the FMCG sector. In response. . Indian and multinational FMCG players are leveraging India as one of the strategic sourcing hub for cost-competitive product development and manufacturing to cater to international markets. Food products are the leading segment which is accounting for 43 per cent of the overall market. easier access.

Household cleaners (Dish/Utensil/Floor/Toilet cleaners). Marico. Bottled water. Juices. 2. Processed vegetables. Insecticides and Mosquito repellants. Tea. Nirma and Ricket Colman. The major players are : Hindustan Lever Limited. The Household Care.The FMCG sector consists of the 3 categories: 1. Staples/Cereals. Branded flour. Hindustan Lever Limited. Chocolates. Cakes). Cadbury. Snack foods. Branded sugar. Nestle.Health beverages. Hindustan Lever Limited. Processed meat. Diapers. the major players being. Sanitary products) and Shoe care.Oral care. Branded rice. the major players being.Fabric wash (Laundry soaps and synthetic detergents). Soft drinks. Bakery products (Biscuits. Coffee. Godrej Soaps. Pepsi and Dabur. Metal polish and Furniture polish.The Branded and Packaged foods and beverages. 3. Paper products (Tissues. Air fresheners. Coca-Cola. Hair care. Wash (Soaps). Deodorants and Perfumes. Breads. The Personal Care. Colgate. CHANNELS OF BEVERAGE INDUSTRY . Processed fruits. Dabur and Procter & Gamble. Cosmetics and Toiletries. Ice- creams.

the erstwhile bottler of Coca-Cola. The family manufactures and sell Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Varun Beverages brand. part of M. The Varun beverages group has in total 28 bottling plants in West Bengal. Sierra Mist. When Varun Beverages entered. Varun Beverages success is the result of superior products.P. Since the entry of Varun Beverages -Cola to India in 1989. Other products offering by Parle included Limca & Goldspot. another upcoming player in the market was. Varun Beverages has the license to supply beverages in the territories of Western U.. Varun Beverages Twist. engages in bottling and distribution of Pepsi. including: Varun Beverages. Inc. high standards of performance.. Varun Beverages Limited operates as a subsidiary of RJ Corp Limited. half of Haryana. 13 districts of Karnataka and whole of Nepal. There are about 4. 50.INTRODUCTION & COMPANY PROFILE VARUN BEVERAGES : Varun Beverages with the merger of Varun Beverages -Cola and Frito-Lay. 7UP. the soft drink industry has under gone a complete change.P. Mountain Dew Code Red. Evervess Soda and Aquafina. Karnataka. a bottling company. Parle was the leader with the Thums-up being its flagship brand. Varun Beverages Co has merged with the Quaker Oats Company. Rajasthan. Its offering includes Campa. distinctive competitive strategies and the high level of integrity of our people. whole of Rajasthan. . The company was incorporated in 1995 and is based in Gurgaon. 3 districts of Maharashtra. Campa-Lemon & Campa- Orange. Mountain Dew. creating the world’s fifth-largest beverage company.brands are Varun Beverages. Mirinda Lemon. Tropicana was acquired in 1998. Mirinda Orange. is one of the world's largest food and beverage companies.third of total soft drink sales in the United States Varun Beverages Co. (India & Nepal) and is responsible for producing and marketing 44% of Varun Beverages requirement in India. and Mug Root Beer account for nearly one. Gujarat and Maharashtra. Diet Varun Beverages. “pure drinks”. Slice Orange. Goa.Cola. In 2001. The various flavors and sub. India. with 15 brands – each generating more than $1 billion retail sales per year. Slice Mango.000 soft drink retailers in India and their number is increasing day by day Varun Beverages -Cola North America's carbonated soft drinks. Mountain Dew. The company's principal businesses include:  Frito-Lay snacks  Varun Beverages -Cola beverages  Gatorade sports drinks  Tropicana juices  Quaker Foods V B L.

He started H. Lay Co. Inc. Herman Warden Lay was an famous American businessman who was involved in potato chip manufacturing with his eponymous brand of Lay's potato chips. Inc. Donald Mcintosh "Don" Kendall is a former businessman and political adviser.. American food and Beverage Company which is one of the largest in the world..W. The company’s headquarters is in Purchase. a subsidiary of PepsiCo . with the products which are available in more than 200 countries.BRIEF HISTORY : PEPSICO PepsiCo.. He is a former CEO of Pepsi Cola and he served as CEO of PepsiCo from 1971 to 1986. It took its name in 1965 when the Pepsi-Cola Company merged with Frito-Lay. New York. which is now part of the Frito-Lay Corporation. Inc.

Guth was also president of Loft. and began merchandising a successful 12-ounce bottle for five cents. The drink proved to be so popular that in 1902 Bradham incorporated the Pepsi-Cola Company. Guth (1876– 1948). had a chemist formulated a better drink. North Carolina. Bradham (1866–1934). He established a new Pepsi-Cola Company. Inc.. Pepsi-Cola advertisement. Bradham named his sweet sugary cola-flavoured carbonated beverage Pepsi-Cola in 1898. . who was the founder of the modern Pepsi-Cola.who was a pharmacist in New Bern. set up new bottling operations. the company fell on hard times after World War I and was reorganized and reincorporated on several occasions in the 1920s. a candy manufacturer and soda-fountain chain (founded 1919). was changed to Pepsi-Cola Company. After many years of moderate prosperity. Hoping to duplicate the recent success of Coca- Cola. Incorporated. In 1931 the company’s trademark and assets were picked up by Charles G. and in legal battles in 1936–39 he lost the controlling interest in the Pepsi-Cola Company to the new management of Loft.The very first Pepsi-Cola was created by Caleb D. When in 1941 the Pepsi-Cola Company was merged into Loft. the name Loft.

Inc. separate company called Tricon Global Restaurants. the maker of snack foods such as Fritos. Quaker Foods and Beverages. In 1965 Pepsi-Cola merged with Frito-Lay. Inc. After the death of Steele.Pepsi-Cola Company In 1950 Alfred N. PepsiCo’s popular brands included Pepsi cola. Evolution of Pepsi LOGO . Lipton Tea. Doritos. became an active director of the company. PepsiCo focused on expanding its operations in other countries. (1978). In the early 21st century. actress Joan Crawford. In 2008 it bought a controlling interest in JSC Lebedyansky Russia’s largest juice manufacturer. His emphasis was on giant advertising campaigns and sales promotions increased Pepsi-Cola’s net earnings 11-fold during the 1950s and made it the chief competitor of Coca-Cola. which was its second largest market. notably Russia. and Rold Gold pretzels. PepsiCo acquired the Tropicana and Dole juice brands from the Seagram Company in 1998. and three years later it completed its acquisition of Wimm-Bill-Dann Foods. but in 1997 the restaurant chains were spun off into a new. Tropicana juices. Those investments helped make PepsiCo the largest food and Beverage Company in Russia. Quaker Oats cereals. and Kentucky Fried Chicken Corp. became the chief executive officer. Taco Bell Inc. (1986. his wife.. Frito-Lay snack products. Looking to add more and more products that were considered healthier. Lay’s potato chips. and Rold Gold pretzels. With the merger. Inc. and in 2001 it merged with the Quaker Oats company to form a new division. Steele (1901–59). Gatorade sports drinks. (1977). a former vice president of Coca-Cola Company. now called KFC)—and Seven-Up International (1986). The newly company diversified further with the purchase of three restaurant chains—Pizza Hut.

The split looks like this: PepsiCo Americas Foods includes Frito- Lay NorthAmerica. The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's 2nd carbonated soft-drink maker. a second for US drinks. Quaker. named. The beverage portfolio includes iconic refreshment brands Pepsi. The group has in total 9 bottling & manufacturing plants in India & Nepal and is responsible for producing and marketing 30% of Pepsi business in India. Hot on the heels of Coke’s introduction of Blak. and Africa. (VBL). became PepsiCo largest bottling business in India through its entity.. the rest of Europe. including Gatorade and Tropicana. 3 districts of Maharashtra. called Aquafina Alive.000 employees. the company continues to try new iterations: In2007 the company introduced its first vitamin-enhanced water. and a third for food and drinks abroad. half of Haryana. Asia. PepsiCo. North East and the entire country Nepal. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US. PepsiCo is approaching a size that can be better t here unit sratherthantwo. Frito-Lay’s salty snacks rule the US market.vis competition in the geographical domains that the group operates. hydrating and nutritional beverages such as Aquafina drinking water. has been associated with PepsiCo since the latter’s entry into India . in 2006 Pepsi launched a coffee-flavored cola. whole of Rajasthan. in the UK. PepsiCo Americas Beverages includes North American beverage sales. Also Lehar verves soda among local brands. 7up. Venturing . This is possible through rigorous & robust distribution set-up & aggressive input deployments in the market place.P. part of M. The total turnover of the beverages division is about 800 cores and enjoy a healthy market share of 52% vis. in addition to low calorie options such as diet Pepsi. As one of the largest multinational investors in the country. The group manufactures and markets carbonated and non-carbonated soft drinks and package drinking water under the Pepsi brand umbrella. History of Pepsi in India PepsiCo entered into India in 1989 and grew to become one of the country’s leading food and beverages companies.a. Varun Beverages Ltd. splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food. Inc. The company announced a major restructuring in 2007.. VBL has selling & distribution rights in territories of East Delhi. the snack division accounts for about one-third of company sales. Tropicana twister and slice. is currently one of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480.in 1991. as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. With a saturated soft-drink market. juice based drinks Tropicana. and PepsiCo International includes business in the UK.P. RJ corp. the Middle East. PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth.we seek to serve our customers with passion to ensure Pepsi’s beverages brands retain their position as market leaders in our franchise areas. Pepsi Max Cino. CEO of PepsiCo Indra Nooyi said that due to the company's healthy growth in recent years. a license agreement was signed between the two companies and RJ corp. PepsiCo has established a portfolio of brands that seek to refresh and excite Indian consumers. and the Latin American food and snack businesses. Goa. Mirinda and mountain dew. Western U.

000 people Facilities:  38 bottling plants  3 food plants . at organic grocery store chain Whole Foods. It also began selling Fuelosophy. PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006.further into the non-cola category. asmoothie drink. Haryana Employment opportunities: Presently employs 6400 people and provides indirect employment to almost 200. and struck a deal to develop products with juice maker Ocean Spray Cranberries. Key Facts Indian headquarters: Gurgaon.

 We continuously excel to achieve and maintain leadership position in the chosen businesses. associates and community. . and to our associates. Our Values  We hold strong values in business and fully respect our customers.  Our diversity and unity brings creativity to our relationships within our group.  Creating value for our stakeholders by driving excellence in our operations. Growth Oriented and Profitable Organization by:  Offering best quality & refreshing product to every customer & consumer. Our Mission Being a Global.  Being responsible towards environment & society. respect & empowerment. and delight all stakeholders by making economic value additions in all corporate functions. Varun Beverages Philosophy Our Vision To become the most Successful & Profitable Beverage Company in the world having Market Leadership in the territories we operate.  Being a preferred employer providing consistent growth path.

in presence of Mr. Kendall. . Donald M. Ravi Kant Jaipuria is the promoter and founding Chairman of Varun beverages Limited. Jaipuria has three decades of hands-on experience in conceptualizing. George Bush.  He is hands on. executing. Founder of PepsiCo Inc.  He is the only Indian bottler to be awarded the PepsiCo “International Bottler of the Year” award in the year 1997. About Founder Chairman  Mr. well connected and respected entrepreneur of the business community in South Asia and Africa. It was presented at PepsiCo’s centennial year and the award was presented by Mr. the 41st President Of USA.  Mr. Beverages and Dairy business in South Asia & Africa. developing and expanding the Food.

foods.  To expand the scale of production to enjoy the benefit of economies of scale i.  To further improve the quality of the product so as to become the leading supplier of Safety beverages.  To minimize the wastage or scrap to ensure the cost effectiveness.e. to increase the level of production to reduce the per unit cost.  To improve the productivity by effective utilization of resources. FUTURE PLANS OF THE COMPANY  To capture major parts of the Global market so as to cater to the needs of both domestic as well as the international market. mineral waters etc in the world .

Having been an intern here. While making the analysis on Performance Appraisal Process I have provided detailed information about performance evaluation and I have covered all the related factors with it and in addition to that I have tried to incorporate the theories that I have learned with the practices I have seen. There are several resources needed by the organization but most effective one is the human resources. Here the study also has fulfilled some other relevant purposes. . the lacking of the HR Department and my recommendations for improving the total HR practices of Varun Beverages. one of the largest franchisee in the world (outside US) of carbonated soft drinks (“CSDs”) and non-carbonated beverages (“NCBs”) sold under trademarks owned by PepsiCo have been described in a precise form. performance appraisal. The appraisal process of Varun Beverages. Chapter 2 ‘A study on Employees’ Performance Appraisal of Varun Beverages’ Executive summary:- Human Resource Management focuses on the most key element of the organization. among these important functions performance appraisal is a remarkable one. Performance appraisal has been selected because it is a vast area to study and so many things to learn in a realistic point of view. all the respondents provided their full cooperation and participated enthusiastically. Literally. performance assessment and performance management. The report actually aimed at having a pragmatic notion on performance appraisal process and how it effects in the development of human resources and organization development. all the terms refer to the process of comparing the actual performance with the relative standards. such as. several things have been appeared in mind to make the report. the responsibilities I had to handle during the internship. here employees performances are evaluated to determine the extent to which employees performances contribute to strategize organization goals. The report of the internship has been titled as. The study basically based on the study overall employees performance appraisal. In this project. Human resource functions are broadly recognized by all organization. my personal observation regarding the critical issues. finally performance appraisal process has been chosen. “A Study on Employees’ Performance Appraisal of Varun beverages”. This report also provides a brief overview on different tasks I had to perform during my internship. having a view of assessment of the organization to discuss critically and recommend on the shortcomings that found.

. 2. This is a case cow brand for the company in terms of sales revenue. and comes under the light drink. SLICE SLICE MANGO. 3. Aquafina water It is mineral water. It is light comparison to Pepsi. PRODUCT PROFILE OF PEPSICO There are Eight brands of Pepsi in India and they are differ in taste. 6. PEPSI Pepsi is considered to be cold drink. It is generally used with alcohol and used by adults. Tropicana In Minute maid pulpy orange cold drink no gas only based on orange juice. It is a non-aerated soft drink. in slice cold drink no gas only based on juice. It is generally preferred by all sections of consumer. Eversses Soda This is soda drink. MIRINDA Mirinda is considered to be lemony in taste. 1. flavor and also in their colors. MOUNTAIN DEW Mountain dew is also considered to be a cold drink. It has no color and no flavor. It is big source of company to cash its publicity 5. 8. 7. It is preferred by all section of consumer but especially to teen-age. It is a non-aerated soft drink. It is preferred mostly Children & Women.7UP 7up is a good product at Pepsi and contains at lemon flavor. 4.

Aquafina. PepsiCo outsells Coca-Cola brands in most of the vital fast growing beverage categories such as bottled water. surpass Coca-Cola's Dasani. .PepsiCo’s “green” PET Bottles and Cans 100 percent recyclable made entirely from renewable and plant sourced raw materials. juices and sports drinks. Tropicana and Gatorade brands hold leading market shares in all of the three categories. Minute-Maid and Powerade brands respectively.

. CONSUMER CHOICE AT A GLANCE Pepsi : Mainly preferred by youngster & kids Mirinda : Common Drink. 7up : Youngster Mountain dew : Youngster Tropicana : Basically preferred by Ladies & kids. Slice : Basically preferred by Ladies & kids. Aquafina : Mostly preferred by travelers. Eversses Soda : Mostly those who consume liquor.

V Hoardings Road signs Sticker Neon light .’s etc. Company spends on it around 8-9% total sales company invested 305cr rupees in advertisement budget. wall painting.P. Board. PROMOTION BY THE COMPANY All advertisement expenditure is incurred by PepsiCo India.A. S. but only D.G. Radio T.

Soda sales declined for the 12th consecutive year as investors have been turning to bottled water. Pepsi has produced consistent net profit margins of around 10%. but Pepsi has been generating more top- line revenue than Pepsi for decades. Frito Lay and Quaker Foods. Earnings PEP may own a more diverse product line. Pepsi is primarily a beverage business. While Pepsi’s net income has been trending downward in recent years. Sales Coca-Cola may be able to produce more net income. . it manages to stay ahead thanks to superior margins. but Pepsi generates around half of its sales from food brands such as Doritos. but Coca-Cola has been able to drive more earnings to its bottom line. 2. while Coca-Cola margins have been in the 15-18% range for the past several years. Comparison PEPSI Co and Coca-Cola 1.

Consecutive Dividend Increases Both Coca-cola and Pepsi have served their shareholders well over the past several decades with their commitment to continuously paying and growing their quarterly dividends. As a result.5% annual increase over the past decade. Both are dividend aristocrats.3. 4. Dividend Growth Perhaps just as impressive as their streak of consecutive dividend increases is the rate at which both companies have grown their dividends. while Pepsi has posted an average raise of nearly 10% over the same . which are companies that have raised their dividend for at least 25 consecutive years. these companies are highly sought after by dividend investors for their predictable and sustainable income streams. Coca-cola has averaged an 8.

since users essentially opt in to receive low cost advertising. Social Media Following Social media is an ideal channel for marketing a business. Pepsi has significantly trailed the performance of both Pepsi and the S&P 500. on an overall basis. Coca-cola recently passed 100 million likes on Face book. Price Performance The continued weakness in soda sales has especially impacted Coca-cola’s stock. Pepsi’s more diversified line up of food products have helped soften the blow of declining soda sales. yet important. Both companies have smaller. Effective strategies generate strong word of mouth and can reach millions of individuals in minutes. .5. Over the past five years. followings on other platforms such as Twitter and Instagram. However. 6. both companies have been experiencing negative sales growth. while Pepsi also maintains a strong presence. Coca-cola and Pepsi have both been underperformers compared to the broader market. Due to these factors.

•No repairement services on time for fridges. agencies that soft drinks are harmful and non. •Restrictions made by Govt. •Backed by huge promotion at National and International level. •Natural juices are now available whose price are less or same as soft drinks. •Huge publicity of lemon Mirinda/ Slice has created a lot of demand. OPPURTUNITY •May tie up or liaison with major showrooms. •Incompetent salesman who do not give the schemes in the market regularly. . so its new products can easily penetrates in the market. so it has a good reputation in the market. made to shopkeepers.nutritive. computer centres and restaurant. •Unavailability of various demanded flavours like Mirinda and Mirinda Lemon. •Company has brand equity in the eyes of customers. SWOT ANALYSIS STRENGTH •Pepsi is a well established company. THREAT •Threat of competitors’ new brand entry in the market in near future. •Advertising of Pepsi is much more aggressive than coke. WEAKNESS •Non-fulfilment of commitments on time. •Lot of SGA’s provided in the market .

In 2011. PepsiCo is the largest selling beverage internationally. STEEP analysis After its rival Coca-Cola. you can find Pepsi in almost every country. As a result. The company expects consumers to be able to think of the drink as something that connects the world together. Britney Spears. I have provided a STEEP analysis example for the firm. Robbie Williams and Michael Jackson. which has to maintain the strict and stark differences in cultures around the globe. the social implications are visible in marketing campaigns. sales of this brand accounted for around 37% share of the global beverage market. Most often. with a detailed explanation for all 5 factors: Social It was found upon analysis that social factors impact Pepsi greatly. the company felt the need to study and understand every country’s market by conducting STEEP analysis. big and small companies feel the pressure to completely integrate themselves with the recent changes. No one will disagree that Pepsi is a big brand. You might have noticed that Pepsi’s market reach is also quite diverse. At the time of analysis. Social Media is a very recent yet viral trend that every business is turning toward. Below. Pepsi must communicate its image as a global brand in order to change people’s perception. The aim was to maintain the market position. So. Past ads have flaunted stars like David Beckham. It is essential to give importance to how today’s youth is utilizing technology for their benefit and how Pepsi can reach them to continue increasing brand engagement and brand recall. A good example would be featuring religious festivals in TVC ads. Pepsi has to keep in line with all of those festivals if the team wants to understand the essence of their market. The social media blast has increased interactive engagement with the customers and offers real time results too. The beverage’s advertisements feature famous celebrities and athletes. Pepsi has to make attempts to stay ahead of all such developments. Therefore. Analyzing the social factor would help cash upon the opportunity. From the US to New Zealand. I believe the main reason is that Pepsi is a non-alcoholic beverage. Technological As the technology is advancing with passing time. it was at the 23rd spot in the Interbrand’s report for the World’s Leading Brands. .

which the firm should keep in mind all the time. As a result. regardless of what kind of business it is. I think economic conditions influence the business most. The political scenario is very important because there can be certain civil disturbance in some markets. Pepsi is a non-alcoholic beverage and so the FDA regulates it. the economic downturn plagued the economy and companies had to completely restructure their marketing and sales campaigns. Ecological Ecological factors might affect Pepsi. which are either relaxed or severe. or at home. I would say in Pepsi’s favor that when the economic downturn started in 2008. The most important element of all is that cross-border situations are extremely different. it resulted in increased sales for the company. The reduced profits led them to downsize internally and reconsider about how they should penetrate the market. Political As I mentioned previously. Pepsi’s competitors like Coca-Cola presents competitive pricing and this is a factor. when they got laid off from jobs. . Many different markets across the world follow different set of regulations. Ecological factors usually affect agricultural businesses more directly. This is because people started spending more time with friends and family. Pepsi has to stay in line with all changes and policies in order to adapt to them accordingly. but it will not have any immense toll on its trade and profit generation. Economic As you are aware. Another reason could be fall in sales due to inflation. Pepsi is expected to maintain a firm standard of the laws that the FDA sets with consistency.

To develop my understanding of the subject. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. Social behaviour is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. To enhance the welfare of employees. The ultimate object of my research is to make it possible to predict the behaviour of individuals by studying the factors that govern and guide them. Through my research. Performance Appraisal System implemented in various Organizations varies according to the need and suitability. . 2. 4. This can lead to adverse problems in the Organization. 3. To exercise social control and predict changes in behaviour. Chapter 3 Objectives of the study The following are the objectives of the study – 1. To conduct a study on social behaviour.

also the most enduring.The technical division looks after training of manufacturing personnel for skill development and coaching for carrier growth as well as meeting technical manpower needs. it is important not only to provide them with adequate opportunities but also appropriate training to enhance their skills. on the job training of all employees. Towards this objective group’s retail training division has devised strategies that help develop the employee knowledge and skills. VBL believes that a quality workforce build a quality organization.The management development division looks after training and development affords for executive through in. The Human Resource Development Department promotes VBL to move ahead with its objectives . Considering the economic condition of country and the public sector undertaking in particular the chairman. selected. especially training of the apprentice and young entrants.company and external training programs . The system gives us complete information about the details of the persons their number for current menthe and also the cumulative figure. Everything – production. basic training. In VBL effective utilization of available manpower is of critical importance. . management. supervisors.in other words this department keeps track of the number of persons being trained. trained. managed. as well as managers of the subsidiary companies have been emphasizing on the need for improving the effectiveness of executives. retraining. VARUN BEVERAGE LTD. informed. selected and recruited each month in a year. this can be achieved through refresher training. sales. workers at all levels of the company through intensive training. and recruited each month. marketing. the engineer of this department keeps the note of the number of persons being trained. research &development. SCOPE OF STUDY STUDY OF HRD SYSTEM IN VARUN BEVERAGE LTD. The HRD is for the complete monitoring of various processes conducted for the employees of VBL . utilized and empowered. everything may be moreproductive if people of an organization are sufficiently motivated. considers human resources the most valuable asset of the group. PEPSICO HRD provides the tools you required to manage and operate an organization.

product / process / organization knowledge and experience for new staff members. skilled people is competitive and expensive. “People are our most valuable asset” is a cliché. it takes time to develop ‘cultural awareness’. The market place for talented. policies and purposes of the organization. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Also. Recruitment 2. Training & Development Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Selection 3. Yet. in the sense of getting things done through people. Taking on new staff can be disruptive to existing employees. is an essential part of every manager’s responsibility. Induction 4. under trained and underutilized. Performance Appraisal 5. . Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications. Induction Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices. training and experience required. but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. the reality for many organizations is that their people remain undervalued.4 Review of literature: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human Resource (or personnel) management. which no member of any senior management team would disagree with. Chapter .

The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. . •Self Appraisal.” CHARACTERISTICS 1. Formal procedures are used in the study. It consists of all formal procedures used in working organizations and potential of employees.WHAT IS “PERFORMANCE APPRAISAL”? Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. •Traits. 4. including observable physical action. which are measured in terms of personal characteristics Who Will Appraise? •Superiors. 3. “Performance Appraisal is the systematic. periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. 2. •Appraisal should be done formally as well as informally. •Subordinates. •Appraisal of performance should also be done after an employee is promoted or transferred to another job. It is the systematic examination of the strengths and weakness of an employee in terms of his job. It is scientific and objective study. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. •Peers. When to Appraise? •Appraisal should be done periodically. What Is To Be Appraised? Appraisal is to be done of: •Behaviour. movements. Performance Appraisal is a process. 5. According to Flippo. •Appraisal should be done systematically.

past performance. Critical Incident Appraisal: This method requires the rater to maintain a record of key behaviours that may be critical to make the difference between doing a job effectively and doing it ineffectively. •It may lead to too much supervision with the employees feeling constantly under “watch” . Essay Appraisal: Essay Appraisal is a detailed description of an employee’s strengths. •It provides detailed feedback to subordinates. The rater writes down anecdotes that describe what the employee did that was especially effective or ineffective. •It is unstructured. and suggestions for improvement. •The list of critical incidents tells which of employee’s behaviours are desirable and which one calls for improvements. •The use of this evaluation for rewards and validation of selection devices is severely limited. •It provides only qualitative data 2. It provides information based on systematic observation of actual job performance. the comparison and ranking of subordinates is difficult.TECHNIQUES OF PERFORMANCE APPRAISAL 1. weaknesses. •The supervisor finds counselling easier since he knows his subordinates’ strengths and weaknesses Demerits •It is time-consuming and burdensome for appraisers to regularly write these incidents down. potential. Demerits •The usefulness of the essay appraisal depends heavily on the writing skills of the supervisor. He has to devote considerable time and thought for writing his analysis. He generally writes from diaryof observed critical incidents kept by him Merits •It is a simple method. •It emphasizes rating on objective evidence rather than on the subjective evaluation of traits. •The rater is given the opportunity to express specific points regarding a particular employee’s performance. Merits •It looks at behaviours. •Critical incidents do not lend themselves to quantification. In this. Thus. the ratter describes the performance of the employee in his “own words”.

leadership. Since the standardizedcomparisons across sections and departments can be made. the appraiser. central tendency and halo effect . creative ability. Merits •Rating scales are less time. interpersonal skills. job knowledge. a checklist of items must be prepared for each category 4. •They also provide space for the rater to comment on the evaluation given for each characteristic. For managerialpersonnel. • They allow many employees to be rated quickly. •They permit quantitative analysis and comparison. who is usually the supervisor. Checklist In the checklist method. He “checks” and “ticks” the items.e. The rater merely goes down the list and gives “yes” or “no” responses. Graphic Rating Scale: It is one of the oldest and most popular methods of appraisal. knowledge of work. In this method. is supplied with printed form. initiative.consuming to develop and administer. •This method is subject to all the rating errors. dependability. i. he leaves it blank. leniency. •Rating scales are easy to understand and require no detailed training. more than one performance dimension can be included.industriousness. The assessor goes down the list of factors and notes that point along the scale that best describes the employee. communication skills. willingness to accep t responsibility. Merits •The checklist method reduces some bias. severity. attitude. one for each person to be rated. •In these scales. If the employee does not possess a listed trait.initiative. cooperativeness. Because if there is a big number of job categories. imagination. Demerits •The traits indicated on the scale are mostly subjective. judgement. 3. since the rater and the scorer are different. the attributes included are analytical abilit y. For lower level employees. Demerits •It is difficult and costly. the evaluator uses a list of “behaviouraldescriptions” and ticks those behaviours that apply to the employee. typical qualities rated are quantity and quality of work.making abilities. planning and decision.

These scales specify definite. 5. Merits •BARS are based on a careful analysis of the job. •BARS evaluations are generally upheld due to its job relatedness. •Raters also may become frustrated. The rater’s job is to identify which statements is most (or in some cases least) descriptive of the individual being evaluated.specific rather than trait-oriented. it is hoped. The appraiser rates theemployees based on items along a continuum. These scales are descriptions of various degrees of behaviour relating to an aspect of performance dimension.oriented.consuming to develop.oriented rather than results. Behaviourally Anchored Rating Scales (BARS): This method has been produced by combining major elements from the critical incident and graphic rating scale approaches. all of which may be favourable or unfavourable. Demerits •This method tends to be disliked by raters because they are forced to makedistinctions between statements that are difficult to differentiate between. observable and measureable job behaviour. . •It is very difficult to keep secret of the values attached to various statements. 6. Forced Choice: In this method. the ratter has to choose between two or more statements. cumbersome and expensive method. These examples or anchors make the rating scale more job. but the points are examples of actual behaviour of the given job rather than general descriptions or traits. less subjective and less error- made. Merits •The evaluation is more objective. Demerits •It is rather difficult. •It is time. This approach starts with a rating scale but it uses critical incidents to provide “anchors” which means ‘examples’ for different points on the rating scale. •This method tends to reduce rating errors. •The behaviours used are actively.

Forced Distribution Ranking: - This method assigns employees to different performance groups: above average.man ranking. There are various ranking methods like: i. Again.)Alternative Ranking: - Under this method.e.to. The number of times an employee is judged better than the others determines his rank. thirdand so on. •Ranking is not as useful as alternative methods in providing performance feedback. . This method assumes that the level of employee job performance conforms to a normal statistical distribution. The number of comparisons to be made can be decided on the basis of the following formula: N (N-1)2 Where. It is subjective because appraisal is not based on specific job related performance. average and so on. second. A rank is prepared by placing the best at the top and thepoorest in performance at the bottom. rather than as individuals. employees are rank ordered in terms of their “performance group”. 8. Demerits •The magnitude of differences in employee performance is not specified. Thus. each employee is compared with all the others in pairs one at a time. ii. In this the ranking is usually confined to one factor. a new list is created with the name of the best employee at the top and the worst at the bottom. or in showing employee strengths and weaknesses necessary for the development of employee training and development programmes. 7. In this. The employee performance levels conform with a bell. An employee’s performance ranking cans bedetermi ned by using either one global criterion or a number of criteria. It provides for an ordinal scoring. a man is compared with all others without considering any specific factors. the appraiser selects the best and poorest from the remaining employees and so on until all employees have been crossed off the original list and placed on the new list. overallperformance.shaped curve. It also becomes cumbersome when the number of employees to be rated is large. It is a simple method but it may involve bias. employees are ranked from best to worst on some characteristic. •Ranking large numbers of employees may become a very cumbersome. Ranking Methods: Under this method.)Simple or Straight Ranking: - This method requires the rater to rank all the subordinates from best to worst. i.first. Iii.)Paired Comparison: This is a modified way of man. This method is easier and simpler than the ranking method. Thus. N is the number of persons to be compared. Merits •They can be helpful when the results of the performance appraisal are used to distribute rewards such as pay raises or financial incentives. •They are inexpensive to design and implement.

the line officers do not themselves fillip the rating form. businessgames and in. Its success- depends upon the competence of the interviewer.floor and interview the supervisors to obtain pertinent information about employees.basket exercises. a group of employees is drawn from different work units. 9. 11. a group of evaluators assesses employees. 12. Assessment Centre Method: Under this method. This group consists of the immediate supervisor. Instead. Confidential Report: A confidential report is a report prepared by the employee’s immediate superior. These are then approved by the concerned supervisor and then placed in the employee’s service file. job. This method focuses on evaluating rather than developing the employee. .related characteristics are evaluated todetermine employee potential for promotion. They work together on an assignment. 10. Personal bias is minimized due to multiple evaluators. this has been made necessary by trade unions and courts to communicate a negative confidential report to the e employee. weaknesses. This group determines the standards of performance for the job. The employees are evaluated bothindi vidually and collectively by using simulation techniques like role playing. It covers limited range of aspects like the subordinate’s strengths. It Isa descriptive appraisal mainly used for promotions and transfer purposes. This is an objective method because the supervisor’s personal bias is reduced due to the active involvement of the personnel officer. Group Appraisal Method Under this method. The qualities generally evaluated are interpersonal skills. Only in recent year. This may be a time-consuming method. the representatives of the personnel department come to the shop. and ability to plan and organize. Field Review Method: Under this method. Evaluator’s observeand rank the performance of all the employees. major achievements or failures and information on some personality traits. measures actual performance of employees analyses the causes of poor performance and suggests for improvements. In this. but it is consuming method. communicating ability. This method relieves the supervisor of the need for filling in appraisal forms. head of the department and a personnel expert. The interviewer asks questions and takes detailed notes of the answers given by supervisors.

14. Reddin.improvement goals and thus proves effective Training and Development program. . c. spoilage. d. “BO is the establishment of effectiveness areas and effectiveness standards for the managerial positions and the periodic conversions of these into measurable time bound objectives linked vertically and horizontally and with future planning”. MANAGEMENT BY OBJECTIVES (MBO) Peter F. MBO identifies performance deficiencies and enables the management and the employees to set individualized self. Management at succeeding lower level in the organizations establishes targets which are integrated with those at the next higher level. MBO helps and increases employee motivation but it relates over all goals to the individual’s goals and helps to increase an employee’s understand of where the organization is and where it is heading. e.)Overhead cost. Under this method. accidents. Human Resources Accounting Method: When well. training.)Cost of errors. MBO results in a “means ends” chain. selection. etc. According to Prof. Costs of human resources consist of expenditure incurred on recruitment. the performance is judged in terms of costs and financial gain. the financial assets are decreased due to their higher productivity. Thus. it can insure that everyone’s activity is ultimately aimed towards organization’s goals. the following factors are considered: a. 13.) The cost of the supervision. compensation.)Quality of items produced.recruited and developed employees leave the Company. b. The performance of employees can be judged on the basis of difference between their costs and contributions. Drucker was the first who gave the concept of MBO to the world way in 1954when his The Practice of Management was first published.)Average value of production. Contribution of employees is the money value of their productivity and creative ideas. To judge performance. wastages and damages.

Rather. there will be objectivity in rating as more than one rater is involved in the assessment process. Another key advantage of the broad group of appraisers involved in the process is that it can provide a more meaningful appraisal for employees with little contact with their workplace. it is in the form of peer appraisal. First developed at General Electric. Infosys are using this method with greater benefits. Reliance Industries. GE (India). subordinates. where team members appraise each other via the use of anonymous rating questionnaire . The Press has recently reported that companies like 3M and British Aerospace is introducing 360 degree appraisal and feeding the results into the formula for performance. But besides all this one particular criticism of many 360 degree systems is that all the raters are given the same instrument. Wipro. 360 degree Performance Appraisal: - The term ‘360 degree’ is used to describe the comprehensive nature of feedback derived from a composite rating from peers. this offers a variety of benefits.better’ feedback and increased employee voice and empowerment. this system has become popular in India also. US in 1992. Team. despite different nature of the contact with the appraise. The teams are then encouraged to resolve internally any performance problems or competence deficiencies in order to facilitate overall team performance and development.The manager makes no attempt to differentiate one member from another in performance terms. In 360 degree appraisal. Furthermore the raters at different levels in the Organization often observe different faces of the employee’s performance.down appraisals are of little value. The 360degree appraisal has proved to be useful especially for providing feedback for senior managers who are often neglected at the top in appraisal terms. Since this kind of appraisal method uses multiple raters for appraisal. Upward Appraisal: Upward Appraisal involves the employee rating their manager’s performance via an anonymous questionnaire. The benefits of upward appraisal include improved managerial effectiveness and leadership through ‘make- you. Team members may themselves provide informal rewards or recognition of superior performance. values.related pay for managers. other attributes of the assessee like talent.RECENT DEVELOPMENTS IN PERFORMANCE APPRAISAL 15.based Appraisal: - In this kind of appraisal the manager appraises the team of employees working under him as a whole. loyalty etc are evaluated by the people who are best placed to do it. Firstly. In such situation traditional top. Targets are set.Sometimes it is also seen that the individual appraisals of each team member is made but not by management. The process is anonymous to overcome employees’ worries about providing an honest but unfavourable feedback on managerial performance. 17. besides assessing performance. superiors and occasionally customers. performance measured and assessments are made and rewards are allocated as with traditional individual appraisals . 16.

The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Rating Errors in Performance Appraisals:- Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. if a salesperson captures an important contract/sale just before the completion of the appraisal. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. Similarly. Some of the most common rating errors are: - 2. 4. age. sex. stereotyping. ERRORS IN PERFORMANCE APPRAISAL 1. These errors can seriously affect assessment results. or behavior exhibited by the ratee near the end of the review period (regency). Halo error: .The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes. 3. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. indirectly increase his/her hold over him. Subjective assessment defeats the very purpose of performance appraisal. .This occurs when employees are incorrectly rated near the average or middle of the scale. 5. 6. For example. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. race and friendship biases are examples of this type of error. Rater effect: -This includes favoritism. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors. Leniency or severity:- Leniency or severity on the part of the rater makes the assessment subjective. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. and hostility. Primacy and Regency effects: . c) He/She may rate leniently in order to win promotions for the subordinates and therefore. the timing of the incident may inflate his or her standing. even though the overall performance of the sales person may not have been encouraging. This safe playing attitude stems from certain doubts and anxieties.A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. Central tendency: . an attractive or popular personality might be given a high overall rating. The attitude of the rater is to play safe. which the raters have been assessing the rates.

7.This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity.Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. Spillover effect: . result in similar rating for current period although the demonstrated behavior docs not deserve the rating. If the dimensions had been arranged in a significantly different order. good or bad. Past ratings. the ratings might have been different. 8. good or bad. Performance dimension order: . .

The respondents: The Managers & Employees of Varun Beverages. Jyoti Verma. and got the following information. . The primary data was collected with the help of survey information. EXPLORATORY research design has been considered as a suitable methodology for present study and for data analysis. I have interviewed the Head of the HR department Ms. I have used two methods for collecting the desired information regarding PepsiCo Human Resource Management and Performance appraisal which were primary and Secondary data collection method. I have conducted a field study by visiting the HRM department of Varun Beverages. The research has been carried out with certain focused objectives which need to be fulfilled after the completion of the study. the sample is selected because they are convenient. The research design will give a clear cut idea of the procedure to be followed for the completion of the project. It is amap (or) blue print to which the research is to be conducted. The completion of these objectives will throw some light on the problem. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. The research instrument: Questionnaire. Sample size and method of selecting sample: Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusion about that universe. A concise questionnaire was prepared keeping in mind the information specifications Type of Research A Research design specifies the methods and procedures for conducting a particular study. The research approach: Survey Method. A sample is a representative of the universe selected for study. Chapter 5 Methodology The research methodology I used for this project is simple and easy in comprehending. The data source: Primary as well as Secondary. As the name implies.

This non probability method is often used during preliminary research efforts to get a gross estimate of the results. •Use of company’s performance appraisal form designed by the company’s HR Manager. Systematic Sampling – It is a sampling where the limited number of selected respondents is figure out based on some criteria so that only those respondents can be asked for the purpose of filling questionnaire. All were employees of VBL PepsiCo. . Random sampling Technique was used in the survey conducted. SOURCES OF DATA COLLECTION THE PRIMARY SOURCES •Collection of data with the help of questionnaire related to performance and personal traits of employees and workers. specific method of data collection and analysis and time required for the project. which includes problem definition. THE SECONDARY SOURCES •Books related to performance appraisal & induction policy. without incurring the cost or time required to select a random sample. •Searching on the internet for the significant information. Sample size: The sample size for the survey conducted was 50 respondents. There are two types of sampling: Random Sampling – Random Sampling is a process of selecting the sample size randomly and no choice or preference to be made about the selection of respondents for the market survey and Questionnaire to be put forth against him. RESEARCH DESIGN Research design is the overall description of all the steps though which the projects have preceded from the setting of objectives to the writing of the project report. The success of the project depends on the soundness of the research design. •Internal survey of the organization. •Handbook of the company.

Department Head fills Send Appraisal form to the general information the Department Head about the employee Department Head rate Department Head note the employee as per down the key their performance on responsibility areas of the Job the assessee The filled form is send The performance back to the Manager Assessement Report is and the Administration Finaly approved by the Department for the Managing Director FEEDBACK purpose . CHAPTER 6 ANALYSIS AND INTERPRETATION: PERFORMANCE APPRAISAL PROCESS OF VARUN BEVERAGES.

Performance Assessment Report: Factors: (Please Tick) Job Knowledge Serious Satisfactory Well Good Exceptional Gap Knowledge Informed Knowledge Expertise Attitude No Careless Interested Enthusiastic Always Interest Indifferent in work at Job very Enthusiastic Quality of Below Somewhat Good Very Excellent Work Standard on mark Satisfactory Good Contribution Poor Average Good Excellent To Work . 3. Performance Appraisal Report VARUN BEVERAGES LTD. …………………………………………………………………. FeedbackApproval Name: ………………… Dept: ………………… Reporting to ………………… Designation: ……………. …………………………………………………………………. Grade: Staff/ Worker (Plz Tick) Note: (To be filled by Dept Head as per Job Description) KRAs: (Key Responsibility Areas of the Assess) 2.. …………………………………………………………………. 4.

.……………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………… Approved by Managing Director: ………………………………………………………………… .Contact Poor Average Good Excellent With other Disciplined Poor Average Good Excellent Attendance Poor Average Good Excellent Report of HR & Admin Dept…………………………………………………………………………………………… ………….

In the 50 respondent 50% of the respondent are male and 50% of the respondent arefemale. Majority of the respondents are satisfied with their present salary.40% of the sample size reveals that qualification is an important factor in the process of recruitment and selection . 40% of the respondents are getting the salary range between 8000-10000. 2. 6. FACTS AND FINDINGS DATA INTERPRETATION Facts and findings:- 1. 3. 60% of the respondents believe they possess the leadership qualities in them. 50% of the respondents are aware with the job responsibility. 100% of the respondents are getting the on the job training. 50% of the respondents have got the experience of 5-10 years 4. 5. 9. 10. 8. Majority of respondent come under the age group of 25-30. 60% of the respondents are satisfied with the incentives scheme. 7.

Complex Appraisal Form: The previous performance appraisal form of the Company was very complex which made the appraisal process very confusing. The Company should be flexible to change the appraisal technique as per the changing situation . 7. the superiors or Department Head appraised the workers but there was no policy for the workers to appraise their superiors. Lack of Proper Appraisal Method: The Company is using Graphic Rating Scale Method of performance appraisal for years which is not enough keeping in mind the changing environment.decided which did not included all the significant parameters but I was not permitted to design my appraisal form.e. Pre-decided Appraisal Performa: The performance appraisal report/ Performa of the Company were pre. Favouritism: I observed in some cases where the supervisor had rated high to some employees on parameters like attitude towards work. peers subordinates. The Company had already set its evaluation and appraisal system and I was bound to use the same data which was collected by the supervisor himself . Limited Scope: In the Company I was not permitted to evaluate the data for the appraisal purpose.In the current scenario for having a clear and complete picture of the overall performance of the employees 360 degree Appraisal should be introduced in the Organization where the employees performance appraisal is made the superiors. . 3. 5. Time Limitation: As the employees were burdened with their work they could not give adequate time to the appraisal process. 6. 4. discipline due to their favouritism which I observed was not actually true for those employees as they were lazy and working at the workplace. etc. But this drawback was removed later on by introducing the Simple Appraisal Performa. 2. clients. Single Appraisal System: There was only one way in the Company to appraise the workers i. LIMITATIONS 1.

. DATA ANALYSIS & INTERPRETATION OF STAFF SAMPLE SIZE: 30 JOB KNOWLEDGE S-2 S-3 S-4 Serious Gap 1 Satisfactory Knowledge 2 5 2 Well informed 8 2 1 Good knowledge 4 1 1 Exceptional expertise 1 1 1 16 14 12 10 Serious Gap Satisfactory knowledge 8 Well informed 6 Good knowledge Exceptional Expertise 4 2 0 S-2 S-3 S-4 Interpretation: Most of the employees have sufficient knowledge to perform their job effectively.

Attitude towards Work S-2 S-3 S-4 No interest 1 Careless 1 2 Interested in work 2 2 5 Enthusiastic at job 3 4 2 Always very 3 5 enthusiastic 14 12 10 Always very ethusiastic 8 Enthusiastic at work Interested in work 6 Careless 4 No interest 2 0 S-2 S-3 S-4 Interpretation : More than 90% of employees have positive and enthusiastic attitude towards work. .

Quality of work

S-2 S-3 S-4

Below standard 2 2

Somewhat on mark 2 5 4

Good satisfactory 3 4 2

Very Good 1 1

Excellent 3 1

14

12

10
Excellent
8 Very good
Good satisfactory
6
Somewhat on mark
4 Below standard

2

0
S-2 S-3 S-4

Interpretation :
A considerable employee quality of work is not up to the mark, the staff
employee need to improve their quality of work.

Contribution to work

S-2 S-3 S-4

Poor

Average 5 2 1

Good 2 6 4

Excellent 1 4 5

14

12

10

8 Excellent
Good
6 Average
Poor
4

2

0
S-2 S-3 S-4

Interpretation :

All the workers are contributing well towards the work.

Discipline

S-2 S-3 S-4

Poor

Average 1 3 2

Good 6 4 4

Excellent 4 4 2

12

10

8

Excellent

6 Good
Average
Poor
4

2

0
S-2 S-3 S-4

Interpretation :

More than half of employees are well discipline at the work.

Contact with other S-2 S-3 S-4 Poor 1 2 2 Average 2 4 4 Good 4 3 5 Excellent 2 1 14 12 10 Excellent 8 Good 6 Average Poor 4 2 0 S-2 S-3 S-4 Interpretation : Most of the employees need to work on improving their relationship and contact with others. .

ATTENDANCE S-2 S-3 S-4 Poor 1 Average 3 2 1 Good 5 6 4 Excellent 2 4 2 14 12 10 8 Excellent Good 6 Average Poor 4 2 0 S-2 S-3 S-4 Interpretation: Almost all the members are punctual and attentive. .

AGE O 20-30 O 30-40 O 40-50 O 50 and above 5. QUESTIONNAIRE SAMPLE SIZE: . Are you satisfied with the Performance Appraisal Process? O Yes O No. ADDRESS: ……………………………… 3. Do you have sufficient knowledge of the present job? O Yes O No. NAME: ………………………………… 2. Do you think the Company should stick to the same Appraisal techniques forever? O Yes O No 8. 6. .: …………………………… 4. PHONE NO.50 QUESTIONNAIRE FORM 1. How frequently should the Performance Appraisal be conducted in the Company? O After 3 months O After 6 months O Once in a year 7.

9. Is Performance Appraisal really effective in enhancing the performance of the employees? O Yes O No 10. Is there a need of Post Appraisal interview in the Organization? O Yes O No 13. Do you think separate training should be given to the raters for the appraisal programme ? O Yes O No 14. What role does the Performance Appraisal play in maintaining the cordial relationship between superiors and subordinates? O Major O Minor . Do you think you have achieved the target performance level? O Significantly O Partially 11. What role does the Performance Appraisal play in the overall success of the Company? O Significantly O Partially O Minor 12.

AGE 20-30 30-40 40-50 50 and above Q5. Satisfaction with PA process YES NO . QUESTIONNAIRE RESPONSE Q4.

How frequently should the Performance Appraisal be conducted in the Company After 3 months After 6 months Once in year Q7. Do you think the Company should stick to the same Appraisal techniques forever? 35 30 25 20 Do you think the Company 15 should stick to the same Appraisal techniques forever? 10 5 0 Yes No .Q6.

Is Performance Appraisal really effective in enhancing the performance of theemployees? 1st Qtr 2nd Qtr . Do you have sufficient knowledge of the present job? 1st Qtr 2nd Qtr Q9.Q8.

Do you think you have achieved the target performance level? Significant Partial Q11.Q10. What role does the Performance Appraisal play in the overall success of the Company Significant Partial Minor .

Q12. Is there a need of Post Appraisal interview in the Organization YES NO Q13. Do you think separate training should be given to the raters for the appraisalprogramme 1st Qtr 2nd Qtr .

Q14. What role does the Performance Appraisal play in maintaining the cordial relationship between superiors and subordinates? Major role Minor role .

It is being analyzed that the employees have adequate job knowledge. Through this appraisal the management could find out theare as where the performance is lacking behind and could detect and analyze the root cause of the problem and try to remove the deviation to improve the overall performance of the Organization. Quality of Work. On the other hand the quality of work is the aspect that draws the management attention for improvement. it is being concluded that the performance appraisal programme is very important for any Organization. Varun Beverage ltd (PepsiCo). . In context of the Company under study i. they are very enthusiastic at work. well disciplined and maintain good relationship with others.e. CHAPTER 7 CONCLUSION From the entire study on the project on the topic. The Performance Appraisal Programme helps the management in assessing the current level of performance of the employees and can find the variance or gap between the current and desired level of performance of employees. Attitude towards Work. the Company has analyzed the performance of its staff members and the workers taking various parameters namely Job Knowledge. The growth and success of the Company is mostly dependent on the efficiency and effectiveness of the human resource which can be properly measured through the effective performance appraisal programme. they are punctual.

SUGGESTIONS Some suggestions to increase the usefulness of study: - 1. 3. Post Appraisal Interview: .After the appraisal of the employees. 360 degree Performance Appraisal: 360 degree performance appraisal should be introduced in the Organization to have a more accurate picture of the performance of the employee. 7. Frequent Appraisal: The performance appraisal should be done at regular interval i. Unbiased: The entire performance appraisal process must be unbiased. twice a year so that a perfect comparison of skills could be done. a post appraisalinterview should be conducted to know the difficulties of the work and training needs of the employees. The rater must rate the employee on the basis of his real work performance and must also avoid favouritism while rating. Simplicity: The Performance Appraisal Performa should be made as simple as possible toincrease the effectiveness of the programme and reduce the complexity and unnecessary confusion.e. 6. It should be done after 2 months for the new employees. 2. The employees should be informed about their performance and should also be provided adequate counseling on how to fill the gap to reach the desired performance level. conducting post appraisal interviews and correcting the rating errors. Feedback: - Efforts should be made to communicate the ratings to both the employees as well as the raters. 4. Trained Raters: The Evaluators should be given adequate training in order to provide them knowledge and skills in designing appraisals. 5. .

D. Personnel Management -Edwin B.slideshare. Nolakha https://www.scribd.com/MBA-Projects/HR-Project-Report/performance-appraisal- system-bsnl-project-report/literature_review_and_concept_research_performance-appraisal- system-ch2.humanresourse. Magazines and other References:- Magazines and other References- HRM Review. Principles of Management .hrmmguide. Sudha 3.R. 6. L.allprojectreports.V. Flippo 5.hr-topics.com •www. Websites.hrmguide. Human Resource Management -K. Induction Profile of Varun Beverage Ltd.com BIBLIOGRAPHY The following books were referred during the preparation of the project report: - 1.net/anujprapanna1/varun-bevrage http://www. S. Cover Story-strategic HRM Annual Report of Varun Beverage Ltd.Gankar 4.E. Websites- •www. Theory & practice -Mac Farland. Ashwathappa 2.com •www. Personnel Management. Mamoria.htm .net •www.com/doc/73635161/Pepsico-Performance-Appraisal-and-Induction-Policy https://www. Human Resource Management -C.about. S.google. Human Resource Management -G. B.com •www.